Politics & Government

NC’s new governor: Stein will give his budget proposal soon. Here’s what to watch for

Gov. Josh Stein delivers his State of the State address to a joint session of the General Assembly on Wednesday, March 12, 2025, in the House chamber of the Legislative Building.
Gov. Josh Stein delivers his State of the State address to a joint session of the General Assembly on Wednesday, March 12, 2025, in the House chamber of the Legislative Building. tlong@newsobserver.com

We’re at the point in new Democratic Gov. Josh Stein’s tenure that soon he won’t be “new” anymore.

In April, he’ll hit the benchmark of his first 100 days, and in the coming days he’ll make his first budget proposal to the Republican-controlled General Assembly. And he just checked off another first this past week, with his State of the State Address.

Good Sunday morning to you and welcome to the Under the Dome newsletter focused on the governor. I’m Dawn Vaughan, The News & Observer’s Capitol bureau chief.

Let’s delve into that Stein speech. With budget season begun at the Legislative Building, Stein’s coming budget proposal will be his biggest ask of lawmakers. His speech suggested some potential common ground on spending, but he hasn’t given the detailed dollar amount yet of what he wants.

Here are Stein’s big pitches to the General Assembly so far:

Give teachers “a real pay raise,” though Stein did not specify how much of a raise he’ll ask the legislature to include in the state budget. He said he wants to reward experienced teachers and make starting teacher salaries the highest in the Southeast. Raises for teachers and state employees are one of the top negotiating issues in every state budget, not just between the governor and the legislature, but also between the House and Senate.

A $4 billion public schools bond to fund “safer, healthier and more modern schools.”

Free school breakfast for all students.

He wants to sign the legislature’s Helene recovery bill — now. Both chambers passed their own versions, but it’s bogged down in final negotiations.

Start a new Fentanyl Control Unit comprised of law enforcement officers and prosecutors who will work to get the drug “off our streets.”

Free community college for students who are working on certifications in advanced manufacturing, health care and information technology.

Stein is also creating a Council on Workforce and Apprenticeships to bring together community colleges, public schools and local businesses.

Gov. Josh Stein leaves the House chamber after delivering his State of the State address to a joint session of the General Assembly on Wednesday, March 12, 2025, in the House chamber of the Legislative Building.
Gov. Josh Stein leaves the House chamber after delivering his State of the State address to a joint session of the General Assembly on Wednesday, March 12, 2025, in the House chamber of the Legislative Building. Travis Long tlong@newsobserver.com

Increase housing supply with different kinds of housing. Stein called for building more multi-family housing including duplexes, triplexes, condos and apartments as well as more special needs housing and single-family housing. Legislation could reduce regulations on types of housing.

Cut taxes for middle class families. Stein called for tax cuts for parents, including on child care, and for “working families,” but did not give any specifics. Republicans have already cut, and are cutting again this year, the individual income tax rate and corporate income tax rate. Taxes are likely a key sticking point in the budget, with Republicans generally wanting an overall reduction.

Create a new Impact Center in Stein’s Office of State Budget and Management “to ensure our government is run effectively and efficiently, because people should know that their tax dollars are being well spent.” Stein didn’t directly refer to President Donald Trump and his billionaire adviser Elon Musk’s major cutting of federal employees and other spending, but added: “Let’s use a scalpel, not a chainsaw.” Efficiency is already a target of the legislature, including elimination of diversity, equity and inclusion programs.

No cellphones in classrooms, which has been the subject of two different bipartisan bills already working their way through the legislature.

Just after Stein’s speech ended on Wednesday night, I asked Republican Sen. Bobby Hanig what he thought about it.

“Let’s get down to some details,” Hanig said.

Gov. Josh Stein delivers his State of the State address as House Speaker Destin Hall and Senate leader Phil Berger look on during a joint session of the General Assembly on Wednesday, March 12, 2025, in the House chamber of the Legislative Building.
Gov. Josh Stein delivers his State of the State address as House Speaker Destin Hall and Senate leader Phil Berger look on during a joint session of the General Assembly on Wednesday, March 12, 2025, in the House chamber of the Legislative Building. Travis Long tlong@newsobserver.com

Stay informed about #ncpol

Coming up Monday on our Under the Dome podcast, I’m joined by politics reporter Avi Bajpai and higher education reporter Korie Dean. Bajpai and I break down the State of the State speeches and interactions, and Dean talks about the latest DEI-targeting at public universities.

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Dawn Baumgartner Vaughan
The News & Observer
Dawn Baumgartner Vaughan is the Capitol Bureau Chief for The News & Observer, leading coverage of the legislative and executive branches in North Carolina with a focus on the governor, General Assembly leadership and state budget. She has received the McClatchy President’s Award, N.C. Open Government Coalition Sunshine Award and several North Carolina Press Association awards, including for politics and investigative reporting.
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